dcsimg Cross Country Bank Ordered to Pay $8.9 Million in New York Fraud Case - indexcreditcards.com

Credit Card Calculators

How long will it take to pay off my credit card?

In the News
  • "As comprehensive a list as you'll find of all the credit card offers on the table now."

Cross Country Bank Ordered to Pay $8.9 Million in New York Fraud Case

by Peter Andrew
Cross Country Bank Ordered to Pay $8.9 Million in New York Fraud Case

NOTE: To offer content from IndexCreditCards.com, including our weekly summary of credit card rates, Credit Card Monitor, in your publication or on your Web site, please contact syndicate@indexcreditcards[dot]com.

Cross Country Bank, a credit card lender targeting poor credit, or “subprime”, customers was ordered to pay almost $9 million by a New York judge for deceptive, fraudulent and illegal practices. Eight million dollars will be in fines, while $900,000 will go toward refunds for New Yorkers who carried the Cross Country Bank credit cards. New York Attorney General Eliot Spitzer filed a lawsuit in 2003 alleging that Cross Country Bank used deceptive credit card solicitations to target consumers with poor credit records, offering credit lines of up to $2,500 but giving the vast majority of consumers only about $400 in credit — most of which was immediately applied to fees imposed by the bank, such as annual, application and monthly maintenance fees.

As part of his lawsuit, Spitzer also alleged that after driving their cardholders into delinquency, Cross Country’s affiliate, Applied Credit Services, used abusive and illegal collection techniques to harass cardholders into making a payment, including repeated phone calls, calling cardholders at work, using insulting and/or obscene language, and making improper threats. In addition, Spitzer’s office alleged that Applied Card Systems debited payments from cardholders? accounts without authorization and misrepresented payoff amounts. Cross Country Bank has changed its name to Applied Card Bank.


Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

Published  (Modified )

Share this article with: